Investing in cryptocurrency has become incredibly thrilling lately. It’s super simple to jump in and has the potential to make your money grow rapidly, regardless of how much you’re working with.
Unfortunately, this popularity comes at a cost. As crypto is digital, cybercriminals are keen to target investors and steal financial information. So, what can investors do to protect their investments and assets? How can you invest money with total peace of mind?
This article will highlight the essential ways that crypto investors can protect themselves. It will explore the best cybersecurity tools for you to use. You’ll also learn simple ways to bolster your wallet’s defenses and keep rising attacks at bay.
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How do cryptocurrency attacks work?
Crypto is an incredibly fast-paced industry where people buy and sell quickly. This makes scamming novice investors easier. In 2023, it’s reported that hackers managed to steal over $1.7 billion from different cryptocurrency platforms. Although this marked a decrease from previous years, the frequency of attacks remained constant. This means that hackers are still trying to defraud investors in huge numbers.
As such, keeping informed on the latest crypto attacks is important. Below are two areas you should educate yourself on:
1. Opcode abuse
Opcodes are integral to specific cryptocurrencies. Think of them as a set of instructions. They can help execute basic commands over a blockchain such as validating transactions and creating contracts.
Opcodes are cost-effective and straightforward to use making them a popular feature of crypto. That said they are open to abuse. More criminals are using them to bypass security protocols to scam novice investors.
Earlier this year scammers targeted the CREATE2 opcode on the Ethereum blockchain. The attack stole up to $60 million from 99,000 investors. The scammers created temporary new addresses with malicious signatures that drained crypto wallets.
2. Phishing attacks
Phishing has become a big deal in cyberattacks. It’s when a hacker poses as a real service to try and trick investors.. They may use misspelled URLs send fake emails or create fake apps to harvest sensitive information.
In 2021, hackers created a fake Trezor app, pretending to be the ‘official’ mobile manager wallet. The app had no connection to Trezor and was a malicious app designed to steal login information. It was downloaded more than 1,000 times before the ruse was detected.
Regulators like the DFPI have also recorded phishing scams where hackers pretend to be customer support. They email investors claiming crypto accounts will close unless they take action. In a panic investors click fraudulent links or supply sensitive information. This gives hackers everything they need to access their wallets.
How to protect your wallet from a cyberattack?
Even though the cryptocurrency world moves quickly, there are simple ways to keep your wallet safe from any misuse. Here are some tips:
1. Activate multi-factor authentication (MFA)
Multi-factor authentication is a straightforward way of bolstering your crypto wallet’s security. Upon login, you must verify your identity by another means. Typically, this involves receiving a one-time code on your smartphone or using an authenticator app. Even if your wallet gets hacked, you can rest easy knowing that hackers won’t be able to authenticate the login. It’s a solid method for keeping your account secure.
2. Protect your online activity with a Virtual Private Network (VPN)
One effective method to shield yourself from cryptocurrency attacks is by employing a VPN. This cybersecurity tool encrypts your internet connection, shielding all your online activities from any prying eyes.
A VPN for your phone will help you safely access your wallet on the go. You can research cryptocurrencies and enter sensitive financial information without compromising your security.
Best of all, many VPNs have many security features, such as flagging malicious websites and downloads. This way, a VPN can protect you from phishing scams and ensure you only visit genuine, reputable crypto resources.
3. Keep crypto technologies updated
Like any technology, wallets, and exchanges constantly evolve to protect us from rising cyber threats. Developers release security patches to plug holes in any potential exploits.
You can only benefit from these new security protocols if you download and install patches when they’re released. Update all your applications and operating systems to ensure no vulnerabilities exist on your devices.
4. Consider using a “cold wallet”
Finally, one effective way of protecting crypto investments is placing them in a cold wallet. Cold wallets remove crypto assets from the online environment.
Many crypto software programs offer cold wallet features for long-term investors who do not intend to access them for some time. You still retain ownership and can access them by moving the keys back into your wallet.
A few final words
As exciting as the crypto industry may seem, investors must recognize that with every opportunity comes risk. This is made all the worse by hackers, who target investors with various exploits, scams, and cyber-attacks.
As this article has shown, you are not defenseless. By using cybersecurity tools like a VPN and updating software, you can repel many of the rampant attacks in the industry right now.
